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Ulviyya Poladova

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Armenia could face an “apocalyptic scenario” if Russia raises the price of natural gas supplied to the country, Armenian Central Bank Governor Martin Galstyan has warned.

Speaking to journalists, Galstyan said a significant increase in the cost of Russian gas could have a “double effect” on the Armenian economy, potentially driving up overall inflation or triggering an economic downturn.

“If the price of Russian gas increases, it will not be Plan A or Plan B, but Plan X,” Galstyan said, stressing that the Central Bank would need to respond in an unconventional manner.

According to the governor, the impact of higher gas prices would extend beyond the energy sector and could affect broader economic conditions.

A rise in gas costs could put additional pressure on consumer prices, while also increasing costs for businesses and households. At the same time, weaker economic activity could emerge if higher energy costs begin to weigh on demand and production.

Galstyan therefore said that the Central Bank’s response could not simply follow its standard policy framework if such a scenario materialised.

The comments highlight Armenia’s sensitivity to changes in the cost of Russian gas, with energy prices representing an important factor for inflation and economic stability.

The Armenian central bank chief did not provide details of what the proposed “Plan X” would involve, but indicated that the response would have to differ from the institution’s conventional policy measures.

His warning comes as Armenia continues to navigate its economic and energy relationship with Russia while seeking to diversify its wider economic and regional partnerships.